Another Ponzi Lawsuit Against Questar Capital Opens Up

Wednesday, June 29, 2011 07:35
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Another Ponzi Lawsuit Against Questar Capital Opens Up

Tags: fraud

Questar Capital just got a class action lawsuit against itself dismissed a few months ago, but now another of its brokers has sparked a second round of legal action.

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Noted securities litigator Mark Tepper has opened up a class action on behalf of 21 Questar clients who invested $1.7 million in what seemed at the time to be a "safe, guaranteed investment."

 

Arguably that was the warning sign right there. But Tepper is calling the units of "JP Mumbles" that these clients bought a full-fledged Ponzi scheme run by self-admitted grand larceny artist John Konoski and sold by Questar broker Edward Gelb.

 

Tepper finds Questar's lack of supervision in this area "disturbing."

 

Over the last few years, he's been fighting the firm on behalf of a different set of clients who were sold into a different Ponzi scheme. That suit finally settled in March.

 

And going back before that, even Questar executives failed the due diligence test and bought into the same Ponzi vehicles that their brokers were selling.

 

 

 

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